Smith & Wesson outlook misses views

TessStynes

Smith & Wesson Holding Corp. projected per-share earnings and revenue for the current quarter that missed expectations, as weakened demand for firearms continued to hurt the bottom line.

For the current quarter, Smith & Wesson forecast per-share earnings of nine cents to 11 cents and revenue of $113 million to $118 million, while analysts polled by Thomson Reuters expected per-share profit of 20 cents and revenue of $130 million.

For the business year ending in April, the company lowered its estimate for per-share earnings from continuing operations to 66 cents to 70 cents with revenue between $504 million and $508 million, from its previously reduced estimate of 89 cents to 94 cents a share and revenue of $530 million to $540 million.

Chief Executive James Debney said in a release Thursday that the second- quarter results "met our expectations as we continued to navigate the consumer firearm market as it returns to a more normalized environment."

The company's inventory in its distribution channel declined more than 18% in the quarter, Mr. Debney said. However, Smith & Wesson also expects that competitors' excess inventory "will continue to reduce the open-to-buy for distributors and retailers for our next quarter," he said.

The industry has benefited in recent years from strong demand as gun enthusiasts stocked up on weapons amid speculation of tighter regulations following several high-profile shootings. In recent quarters, however, U.S. gun sales have been weakening, particularly the demand for sporting rifles.

Intraday Data provided by SIX Financial Information and subject to terms of use.
Historical and current end-of-day data provided by SIX Financial Information. Intraday data
delayed per exchange requirements. S&P/Dow Jones Indices (SM) from Dow Jones & Company, Inc.
All quotes are in local exchange time. Real time last sale data provided by NASDAQ. More
information on NASDAQ traded symbols and their current financial status. Intraday
data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. S&P/Dow Jones Indices (SM)
from Dow Jones & Company, Inc. SEHK intraday data is provided by SIX Financial Information and is
at least 60-minutes delayed. All quotes are in local exchange time.